The market might have been wrong to doubt the robustness of Pets at Home, judging by its latest results. Prior to publication, its share price had fallen 40% year-to-date amid fears over a drop in consumer spending.
Pets at Home’s full-year figures show that pet lovers are still happy to splash the cash on their tabby or poodle.
Investors who remained loyal to the company are now getting a big reward in the form of a 36% increase in the final dividend.
“Pets at Home’s 7% share price jump on the news put it at the top of the FTSE 250 risers, closely followed by Drax which bounced back along with SSE in the FTSE 100 from yesterday’s fear-driven sell-off around a potential windfall tax on profits from electricity generators,” said AJ Bell’s Russ Mould.
“The FTSE 100 advanced 0.4% to 7,516, led by utilities, telecoms and mining stocks – all generous dividend payers, suggesting that people are continuing to rediscover their love of income investments.”
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